China’s Largest Shipping Company in Talks to Invest in Global Ports Deal

(Bloomberg) — China’s largest shipping company is among the firms in talks to invest in a multinational consortium seeking to buy billionaire Li Ka-shing’s global ports, according to sources familiar with the matter. The move aims to ease Beijing’s concerns over the controversial deal.

China Cosco Shipping Corp. is one of several Chinese state-backed companies in discussions with the consortium led by Italian billionaire Gianluigi Aponte’s Terminal Investment Ltd. The buying group also includes US firm BlackRock Inc. and its Global Infrastructure Partners unit.

The inclusion of Chinese investors in the consortium emerged as one of the options to advance the ports sale after high-stakes talks in Switzerland last month between Chinese and US officials. Beijing has fiercely opposed the sale, including two ports along the Panama Canal, over concerns it could affect its global shipping and trade ambitions.

Once completed, the agreement to sell the two Panama ports and 41 others around the world is expected to net tycoon Li’s CK Hutchison Holdings Ltd. more than $19 billion in cash.

Talks are ongoing and the details are not yet finalized. Cosco, CK Hutchison, and the Aponte family’s MSC Mediterranean Shipping Co. didn’t respond to requests for comment. BlackRock declined to comment.

The talks are the latest twist in one of billionaire Li’s most geopolitically challenging deals amid escalating tensions between the world’s two largest economies over global trade. The development has raised hopes that it could ease China’s concerns over the proposed transaction.

Despite the progress of the talks, a deal could still falter. A 145-day period for exclusive talks between CK Hutchison and the consortium ends in late July.

The current structure of the buyer consortium will give Terminal Investment ownership of all the ports except the two in Panama, whose control will go to BlackRock. Terminal Investment parent MSC has 28 offices across Greater China.